Gold prices declined on Monday, reaching their lowest point in over three weeks, as part of a broader market downturn. Investors sold gold holdings to offset losses in other investments, driven by concerns of a potential global recession due to intensifying trade conflicts.
Gold futures experienced a slight decrease of Rs 10, reaching Rs 88,065 per 10 grams on Monday, due to subdued spot demand. The June delivery contracts on Multi Commodity Exchange showed a minimal decline of Rs 10 or 0.01 per cent to Rs 88,065 per 10 grams, with a business turnover of 16,515 lots.
Market analysts linked the decrease in gold prices to unfavourable global market conditions. Internationally, gold futures in New York registered a decline of 0.55 per cent, settling at USD 3,021.51 per ounce.
The precious metal experienced a decline exceeding 3% on Friday, following U.S. President Donald Trump's substantial tariff announcements that affected global markets.
Also Read | Top 5 reasons Indian stock markets are crashing today
China responded with retaliatory measures, including additional 34% duties on all U.S. imports and restrictions on certain rare earth metal exports.
"There's a lot of confusion and uncertainties in the markets about whether there is room for de-escalation ahead, given that tensions are at an extreme right now, with many still struggling to see any quick resolution for now," IG market strategist Yeap Jun Rong told Reuters.
The decline in gold prices, typically considered a secure investment during times of uncertainty, led dealers to suggest that investors could be liquidating their bullion holdings to secure profits and possibly offset losses or meet margin requirements on other investments.
U.S. stock markets experienced a substantial decline, with approximately $6 trillion in value eliminated last week due to global recession concerns . Similarly, Japan's Nikkei share average experienced a significant decline of nearly 9% on Monday.
Also Read | How much will Indian economy be hit by Trump tariffs? Government officials maintain GDP growth projections
In a notable development, the Chinese central bank continued its gold acquisition strategy, marking its fifth consecutive monthly addition to reserves in March.
"Central banks are evidently still keen on adding gold to their reserves, which has been underpinnning support for the precious metals," KCM Trade chief market analyst Tim Waterer said according to Reuters. He added that gold will continue to remain a favoured asset for central banks.
"Such buying flows may serve to keep gold's upward trajectory intact."
In the precious metals market, spot silver increased by 2% to $30.13 an ounce, following its descent to its lowest point in approximately seven months.
The other precious metals also showed positive movement, with spot platinum rising 1% to $926.09, whilst palladium increased by nearly 1% to $919.50.
Also Read | Will Nifty follow Nasdaq into the bear market zone? Stock market crash a direct echo of Wall Street bloodbath
Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services said, “Gold and Silver prices continued to face turmoil, and hit their lowest levels in more than three weeks, as a wider market sell-off triggered by U.S. President Donald Trump's tariff measures impacted bullion traders. Gold and Silver dropped more than 3% on Friday as investors sold off bullion to cover their losses from a wider market meltdown as an intensifying trade war sparked concerns of a global growth slowdown. After a blanket tariff announcement by US President Trump all markets languished, however, more than 50 nations have reached out to the White House to begin trade talks since Trump rolled out sweeping new tariffs, top officials said over the weekend as they defended levies that wiped out nearly $6 trillion in value from U.S. stocks last week.”
“China struck back at the U.S tariffs imposed by Trump with a slew of counter-measures including extra levies of 34% on all U.S. goods and export curbs on some rare-earths, deepening the trade war between the world's two biggest economies. The European Union agrees on a first set of countermeasures targeting $28 million worth of US imports. Federal Reserve Chairman Jerome Powell said tariffs increased the risk of higher inflation and slower growth, highlighting the difficult path ahead for policymakers at the U.S. central bank. Focus this week will be on RBI interest rate decision and US CPI and PPI data,” he said.
Also Read | Is the world staring at a recession? ‘There will be blood’, warn experts on Donald Trump’s reciprocal tariffs impact
Gold futures experienced a slight decrease of Rs 10, reaching Rs 88,065 per 10 grams on Monday, due to subdued spot demand. The June delivery contracts on Multi Commodity Exchange showed a minimal decline of Rs 10 or 0.01 per cent to Rs 88,065 per 10 grams, with a business turnover of 16,515 lots.
Market analysts linked the decrease in gold prices to unfavourable global market conditions. Internationally, gold futures in New York registered a decline of 0.55 per cent, settling at USD 3,021.51 per ounce.
The precious metal experienced a decline exceeding 3% on Friday, following U.S. President Donald Trump's substantial tariff announcements that affected global markets.
Also Read | Top 5 reasons Indian stock markets are crashing today
China responded with retaliatory measures, including additional 34% duties on all U.S. imports and restrictions on certain rare earth metal exports.
"There's a lot of confusion and uncertainties in the markets about whether there is room for de-escalation ahead, given that tensions are at an extreme right now, with many still struggling to see any quick resolution for now," IG market strategist Yeap Jun Rong told Reuters.
The decline in gold prices, typically considered a secure investment during times of uncertainty, led dealers to suggest that investors could be liquidating their bullion holdings to secure profits and possibly offset losses or meet margin requirements on other investments.
U.S. stock markets experienced a substantial decline, with approximately $6 trillion in value eliminated last week due to global recession concerns . Similarly, Japan's Nikkei share average experienced a significant decline of nearly 9% on Monday.
Also Read | How much will Indian economy be hit by Trump tariffs? Government officials maintain GDP growth projections
In a notable development, the Chinese central bank continued its gold acquisition strategy, marking its fifth consecutive monthly addition to reserves in March.
"Central banks are evidently still keen on adding gold to their reserves, which has been underpinnning support for the precious metals," KCM Trade chief market analyst Tim Waterer said according to Reuters. He added that gold will continue to remain a favoured asset for central banks.
"Such buying flows may serve to keep gold's upward trajectory intact."
In the precious metals market, spot silver increased by 2% to $30.13 an ounce, following its descent to its lowest point in approximately seven months.
The other precious metals also showed positive movement, with spot platinum rising 1% to $926.09, whilst palladium increased by nearly 1% to $919.50.
Also Read | Will Nifty follow Nasdaq into the bear market zone? Stock market crash a direct echo of Wall Street bloodbath
Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial Services said, “Gold and Silver prices continued to face turmoil, and hit their lowest levels in more than three weeks, as a wider market sell-off triggered by U.S. President Donald Trump's tariff measures impacted bullion traders. Gold and Silver dropped more than 3% on Friday as investors sold off bullion to cover their losses from a wider market meltdown as an intensifying trade war sparked concerns of a global growth slowdown. After a blanket tariff announcement by US President Trump all markets languished, however, more than 50 nations have reached out to the White House to begin trade talks since Trump rolled out sweeping new tariffs, top officials said over the weekend as they defended levies that wiped out nearly $6 trillion in value from U.S. stocks last week.”
“China struck back at the U.S tariffs imposed by Trump with a slew of counter-measures including extra levies of 34% on all U.S. goods and export curbs on some rare-earths, deepening the trade war between the world's two biggest economies. The European Union agrees on a first set of countermeasures targeting $28 million worth of US imports. Federal Reserve Chairman Jerome Powell said tariffs increased the risk of higher inflation and slower growth, highlighting the difficult path ahead for policymakers at the U.S. central bank. Focus this week will be on RBI interest rate decision and US CPI and PPI data,” he said.
Also Read | Is the world staring at a recession? ‘There will be blood’, warn experts on Donald Trump’s reciprocal tariffs impact
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